Sovcomflot swings to heavy loss on impairment, sanctions

Russian shipping giant Sovcomflot has reported a significant financial downturn for the first half of 2025, swinging to a heavy net loss from the substantial profit recorded in the same period last year. The reversal was driven by a steep decline in revenue and a massive impairment charge, with the company citing the impact of international sanctions on its operations.

For the six months ending June 30, the state-owned tanker company posted revenues of $618 million, a sharp fall from the $1.02 billion generated in the first half of 2024. This top-line decline contributed to a net loss of $435 million, a stark contrast to the $324 million profit reported in the prior-year period.

The move into the red was primarily driven by outgoings that included a non-cash impairment charge of $358 million. While vessel and voyage operating expenses decreased, the impairment charge pushed total expenses up significantly.

In its report, the company stated that, "increased sanction pressure created additional commercial and operational difficulties in the fleet's operation and led to a decrease in income levels and downtime for some of the sanctioned vessels."